Outcome Health Execs Owe $270M And Counting For Fraud

By Lauraann Wood

Former Outcome Health executives who were convicted of a $1 billion fraud against investors, lenders and customers must repay $270.8 million to certain victims, though that amount will climb higher with additional calculation, an Illinois federal judge said Wednesday.

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Insurer Says Ill. Law Firm Sent Settlement Funds To Scammer

By Celeste Bott

Cincinnati Insurance Co. has sued Chicago law firm Schain Banks Kenny & Schwartz Ltd. in Illinois state court, alleging the firm failed to spot an email fraud scheme that diverted confidential settlement funds intended to resolve an abuse lawsuit against an insured Lutheran church.

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7th Circ. Backs Developer's Conviction In Bank Fraud Case

By Celeste Bott

The Seventh Circuit affirmed Tuesday a real estate developer's conviction for his role in a multimillion-dollar embezzlement scheme at a now-shuttered Chicago bank, saying while the line "separating an improper lending relationship from criminality was not obvious in this case," the government presented enough evidence for jurors to conclude he knowingly participated in the fraud.

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Gallagher Knocks Out 401(k) Stable Value Fund Suit

By Kellie Mejdrich

An Illinois federal judge tossed a proposed class action against global insurance brokerage and consulting company Gallagher from ex-workers who claimed they lost millions on a stable value fund in their 401(k) plan, holding that their allegations failed to state a claim for violating federal benefits law.

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Brief

Video Tech Co. Founder Gets 6 Years For Stock Fraud

By Lauraann Wood

The founder of a Silicon Valley video streaming service was sentenced to six years in federal prison Wednesday for orchestrating a pump-and-dump stock fraud scheme that stole money from at least 100 investors.

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FTC Asks Court To Keep Trans Health Suit In Texas

By Spencer Brewer

The Federal Trade Commission has asked a Texas federal court to keep its suit against the World Professional Association for Transgender Health in the Lone Star State, saying that the organization incorporated there in 1980.

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PFAS Turnout Gear Buyer Lawsuits Get Consolidated In Minn.

By Aaron Keller

Minnesota will be home to firefighter turnout gear PFAS "forever chemical" federal lawsuits filed by municipal purchasers from 14 separate states, the Judicial Panel on Multidistrict Litigation has decided, consolidating current actions in Montana and California with lawsuits filed in the corporate home state of 3M Co.

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Generac Investors Ask 7th Circ. To Revive COVID Sales Suit

By Katryna Perera

A pension fund has urged the Seventh Circuit to revive a securities class action accusing home generator company Generac Holdings Inc. and its top brass of failing to keep up with a surge in business during the COVID-19 pandemic, arguing the lower court erroneously found that the statements challenged by the suit were immaterial.

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Notable Q2 Updates In Insurance Class Actions

After 2026's second quarter, there is more authority rejecting class certification on total loss valuation theories from courts at the federal circuit, federal district and state appellate level — along with a resolution of a novel issue of depreciation on a wildfire claim, says Kevin Zimmerman at BakerHostetler.

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Series

Law School's Missed Lessons: Surviving A Long Trial

Most of law school trial advocacy is geared toward the sprint of trying a short case, but beyond managing a cross-examination or closing argument, effectively handling the marathon of a lengthy trial requires the ability to maintain composure, organization and credibility with the jury, says Mihir Elchuri at Hirschler.

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SCOTUSblog Founder Goldstein Seeks Release During Appeal

By Rachel Rippetoe

SCOTUSblog founder Thomas Goldstein on Tuesday asked to be released from federal custody while he appeals his 12 tax and mortgage fraud convictions and a six-year prison sentence, saying he is not a flight risk and it would be a "grave injustice" for him to begin a sentence he believes will eventually get axed.

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Davis Wright Vets Scolded: Don't Tell Foes 'How To Run Firm'

By Jeff Overley

Davis Wright Tremaine LLP veterans have failed to dodge six-figure sanctions in a prominent discovery donnybrook, and a California magistrate judge added invective to the financial injury, lambasting "troubling" omissions in case citations and heavy-handed "nitpicking" akin to commandeering an adversary's law firm.

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Atty, Son Charged In Probe Of Alleged Penn State Drug Ring

By Rose Krebs

An equity partner based in Meyer Darragh Buckler Bebenek & Eck PLLC's Pittsburgh office has been charged with tampering with evidence and obstructing an investigation in connection with an alleged cocaine ring at Penn State University that allegedly involved his son, according to news reports.

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Texas Judge Flags 'Alarming' Number Of Bogus Citations

By Emily Sawicki

A federal judge presiding over an Austin, Texas, immigration case is warning of possible future sanctions after an attorney included an "alarming" number of "hallucinated" case citations in support of a habeas corpus petition.  

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Jackson Walker Says US Trustee Can't Claw Back Legal Fees

By Clara Geoghegan

Jackson Walker said this week that the U.S. Department of Justice's bankruptcy watchdog is beyond the bounds of its authority in a yearslong effort to force the firm to return millions of dollars in legal fees over an undisclosed relationship between a former partner and a Texas bankruptcy judge.

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Over 120 Ex-Judges Demand Probe Of DHS GC's 'Worst' Posts

By Adrian Cruz

A pair of nonprofits along with a bipartisan group of 128 former state and federal judges have asked the Florida Bar to investigate the general counsel of the U.S. Department of Homeland Security for a recent series of social media posts attacking sitting judges.

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Polsinelli Can't Rep Doctor In 'Bad Faith' IP Suits, Cos. Say

By Lauren Berg

Two medical device companies suing Polsinelli PC and its longtime client, a patent-holding doctor, for allegedly pursuing "bad faith" infringement claims asked federal courts in Tennessee and Mississippi to disqualify the firm from defending the doctor in the lawsuits, citing their "diverging interests and liabilities."

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Ex-US Attys Protest Trump's Swift Firing Of Rogoff In Seattle

By Rachel Riley

Thirty former U.S. attorneys backed Roger Rogoff's bid for reinstatement as Seattle's top federal prosecutor after President Donald Trump fired him on the heels of his court-ordered appointment, arguing Tuesday that Trump is trying to "sidestep the Senate's advice-and-consent role and sideline the judiciary" by letting unappointed individuals play such roles.

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DOJ Urges Court Not To Dismiss Suit Against DC Bar

By Alison Knezevich

The U.S. Department of Justice is urging a federal judge not to toss its lawsuit against Washington, D.C., attorney disciplinary authorities, saying the court "needs to halt defendants' flagrantly unconstitutional overreach into the president's executive power."

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Firms Cut From $101M Anthropic Atty Fees Appeal To 9th Circ.

By Lauren Berg

Two law firms involved in securing artificial intelligence company Anthropic's $1.5 billion copyright settlement with a class of authors and publishers are appealing to the Ninth Circuit an order excluding them from attorney fees awarded to court-appointed class counsel.

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USPTO Says Patent Atty's Suit Shouldn't Stop Discipline Case

By Theresa Schliep

The U.S. Patent and Trademark Office has said an Ohio federal court shouldn't pause professional discipline proceedings against an attorney while he sues the agency, saying he's likely to fail with his suit challenging the fact that a judge from another agency is overseeing his discipline case.

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Sinema Says Brief Signal Chat Can't Anchor NC Affair Suit

By Hayley Fowler

A single exchange on the encrypted messaging app Signal became the focal point of former Arizona U.S. Sen. Kyrsten Sinema's testimony on Wednesday as she sought to convince a North Carolina federal judge that she cannot be hauled into court in the Tar Heel state over an affair — which she declined to characterize as a "passionate" romance — she had with her married security guard.

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